Contentious construction bill blocked by senators

By Phillip RawlsThe Associated Press

Published: Friday, April 5, 2013 at 3:30 a.m.

Last Modified: Thursday, April 4, 2013 at 11:18 p.m.

MONTGOMERY | An Alabama Senate committee blocked a bill Thursday that divided the state’s construction industry by proposing a new way to construct public buildings without going through the traditional competition with sealed bids.

The Senate Commerce, Transportation and Utilities Committee agreed by a voice vote to carry over the bill indefinitely.

The bill was pushed by the Alabama’s Associated Builders and Contractors but was opposed by many members of Associated General Contractors of Alabama. Allen said committee members want the two industry organizations to have a consensus before addressing the issue.

The bill would have allowed a government agency to pick a construction manager from qualified companies and then agree on a maximum price for a project.

If the project came in over the maximum, the construction manager would have to pick up the extra cost, rather than the government entity. It also would have allowed a government entity to use the same company to design and supervise a construction project.

The bill created one of the most contentious fights in the 2013 legislative session because the construction industry is still trying to recover from the recession and getting government projects has helped many companies survive the slowdown. .

Jay Reed, president of Associated Builders and Contractors, said the construction manager process is used by many states and works well for complicated projects, historic preservation work, and projects with a quick deadline. Opponents said it would permit big builders with large staffs and budgets to get projects that smaller builders now win through competitive bids.

Alex Whaley Sr., chairman of Whaley Construction in Troy and a board member of the Associated General Contractors of Alabama, said his group would have gone along with the bill if it had a $25 million threshold that would have limited it to the biggest projects, but the two sides couldn’t agree.

<p>MONTGOMERY | An Alabama Senate committee blocked a bill Thursday that divided the state's construction industry by proposing a new way to construct public buildings without going through the traditional competition with sealed bids. </p><p>The Senate Commerce, Transportation and Utilities Committee agreed by a voice vote to carry over the bill indefinitely. </p><p>“It's a dead bill,” committee Chairman Gerald Allen, R-Tuscaloosa, said. </p><p>The bill was pushed by the Alabama's Associated Builders and Contractors but was opposed by many members of Associated General Contractors of Alabama. Allen said committee members want the two industry organizations to have a consensus before addressing the issue. </p><p>The bill would have allowed a government agency to pick a construction manager from qualified companies and then agree on a maximum price for a project. </p><p>If the project came in over the maximum, the construction manager would have to pick up the extra cost, rather than the government entity. It also would have allowed a government entity to use the same company to design and supervise a construction project. </p><p>The bill created one of the most contentious fights in the 2013 legislative session because the construction industry is still trying to recover from the recession and getting government projects has helped many companies survive the slowdown. . </p><p>Jay Reed, president of Associated Builders and Contractors, said the construction manager process is used by many states and works well for complicated projects, historic preservation work, and projects with a quick deadline. Opponents said it would permit big builders with large staffs and budgets to get projects that smaller builders now win through competitive bids. </p><p>Alex Whaley Sr., chairman of Whaley Construction in Troy and a board member of the Associated General Contractors of Alabama, said his group would have gone along with the bill if it had a $25 million threshold that would have limited it to the biggest projects, but the two sides couldn't agree.</p>